The UK-based bookmaker Betfred revealed its decision to end its commercial partnership with British racing in July 2018, at the expiry date of the two parties’ exclusive deal. The company’s Chief Executive Officer Fred Done revealed that all of the operator’s betting shops on the racecourse are to be officially closed, except for Chelmsford and Ascot, and now both Betfred and local sport industry would have to get used to living without each other.
Betfred, which have been one of the largest sponsors of races and a successful on-course betting shop provider, is to see almost all of its track offices shut in July 2018, when its pools license is to end. As mentioned above, the only races which will retain the Tote after July 2018 will be the ones at Ascot and Chemsford, with the latter currently being owned by Betfred. As of the license expiry date, the operator will also stop its local races sponsorship.
The company’s decision is to affect over 600 races. Its on-course shops closure is also expected to be a serious blow for the racing industry, as it would cost racing approximately £6 million on a yearly basis in lost sponsorship income.
Still, the betting shops of Betfred will continue to pay levy and media rights to local sports industry even after the operator withdraw from its commercial partnership with British racing.
Betfred Course Betting Sponsorships
The upcoming closure of 49 of Betfred’s 51 course betting outlets will be a serious blow for the racing industry. The move made by the operator comes as a response to the decision of 54 British courses to roll out their own pool betting operations in 2018, which would see the end almost a century-long presence of Tote on most British tracks and its monopoly over pools betting.
As a result of Betfred’s withdrawal, some of the most prominent local races, such as the Cesarewitch and Cambridgeshire at Newmarket, the Ebor at York, as well as the Grand National Trial at Haydock.
Back in 2016, Betfred was a sponsor of 1,000 races, which makes almost one in ten of the overall 10,035 contests which took place over the year. All of the sponsorship agreements of the sports betting operator are to expire in July 2018.
Operator’s Tough Relationship with UK Racing Industry
The company’s Chief Executive Officer Fred Done has been owner of the Tote since 2011. In his opinion, the racing industry has never forgiven him for becoming the one who won the right to purchase local pools operator. He reminded that Betfred returns an amount of over £12 million on an annual basis to the sport, which is well over the minimum of £9 million required by the Government under the Tote sale agreement.
The relationship of Fred Done with the local racing industry has not been easy over the years. At the time when he made a Tote takeover offer, the bid faced fierce opposition by many sports industry representatives and companies, which decided to support two alternative bids for the pools operator. Still, the £265-million offer of Betfred, which was later reduced to £233 million due to an early payment, was eventually preferred by the Government.
Later, the company’s CEO refused to become part of the British racing’s authorised betting partner programme. The latter was aimed at getting voluntary payments from the offshore turnover generated by bookmakers. Mr. Done also refused to make an agreement with The Racing Partnership, a betting shop television channel, with a contract being signed in July after a deadlock that continued for seven months.
- Author
Olivia Cole
